TheJohn MaythamShow

All South African credit providers are required to register
under the National Credit Act to avoid clients being scammed or cheated in any
loan agreement.

The blanket regulation came into effect on the 11 May this year.

Before this, a person was required to register as a credit
provider under the National Credit Act 34 of 2005 (the Act), if the total
principal debt owed to that party under all outstanding credit agreements
exceeded R500,000 (or if they are the credit provider under at least 100 credit
agreements).

Nthopeng Mokgolego Senior Legal Advisor at National Credit
Regulator (NCR) says “It doesn’t matter how many credit agreements you are
entering into in a year, and it also doesn’t matter the amount of loans you are
granting in a year. Before you can operate legally you must be in possession
off a license that is issued by the national credit regulator.”

She says the purpose of the act is to bring all credit
granters under the supervision of the NCR, especially ‘mashonisa’ [unscrupulous
lenders]